The Ogun State Government has revised its 2020 budget to N280B to reflect the prevailing economic realities arising from the global Covid-19 pandemic with its attendant socio-economic impact on both world and national economies as well as its effects on human lives.
The reduction which is by 38percent brings the earlier N449.9b budget passed by the State House of Assembly to N280b.
The State Commissioner for Finance, Dapo Okubadejo stated this while briefing the state lawmakers on the revised budget at the House of Assembly Complex, Oke-Mosan, Abeokuta.
Okubadejo revealed that the economic fundamentals and assumptions upon which the initial budget was predicated upon have changed, highlighting that the expected fall in federal allocation to the state as well as drastic drop in the volume of crude oil production and expected decrease in Gross Domestic Products (GDP) growths among other things as occasioned by the covid-19 pandemic apparently necessitated the review of the budget.
Giving the breakdown, the Commissioner for Finance said the initial Internally generated revenue of N254.945B is now N113.552B, which is a reduction of about 55percent while the initial recurrent expenditure of N178.7B has now been cut down to N132.482b just as the initial capital expenditure of N271.232B has been reviewed downward to N148.426b, a reduction of 45 percent, while total expenditure now stands at N280.908B.
He added that with the revised budget, infrastructure take 23 percent, Education takes 15 percent just as 20percent had been allocated to health among others.
Speaking on efforts put in place by government to ensure that critical sectors of the state economy such as Health, Infrastructure, Health, Agriculture, Housing and social developments among others, does not suffer, Okubadejo, noted that the state was already diversifying its revenue base through the deployment of technology to block revenue leakages, creating alternative financing strategy to bankroll its infrastructure, leveraging on ICT to collect all revenues including Land use & Amenities Charges for industrial and private premises where taxpayers can authenticate and validate their bills with the QR codes from the comfort of their homes.
The commissioner for finance also noted that the Governor Dapo Abiodun led administration has initiated a business environment council to ensure the state improves on its ease of doing business index, remove multiplicity of tax and attract foreign direct investments among others.